Cabot Prime Week Ending January 17, 2020
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.
Cabot Weekly Review (Video)
In this week’s stock market video, Tyler Laundon lays out a compelling case for why small caps should do well in 2020. He urges investors to focus on simple strategies to get into good stocks and get out of bad ones. And he covers a number of names that he thinks investors can buy now.
CABOT EVENTS:
2020 Market Outlook + 3 Stocks to Buy Now
FREE WEBINAR: Thursday, January 23
By Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader | Space is limited so sign up now for FREE.
SAVE THE DATE
2020 Cabot Wealth Summit - August 19-21, 2020
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue January 16: Overall, you should remain mostly bullish, though Mike still favors stepping a bit lightly on the buy side. The good news is that any shakeout or tight trading area should offer up some solid opportunities. Tonight, though, he’ll again sit tight, riding our winners and holding onto a 17% cash position.
Bi-weekly Update January 9: Remain bullish, but keep your wits about you. The market remains very strong, and Mike is glad to see many of our stocks that consolidated during December come to life in recent days. That said, the indexes are very stretched, so while you should hang onto your strong, profitable performers, it also makes sense to remain choosy on the buy side. In the Model Portfolio, Mike is pleased with what we own, but he’s going to again sit on the current cash position (17%) as there aren’t many good-looking entry points among growth stocks right here.
Other Stocks of Interest January 2: Follow ups to stocks featured August 13, 2019 (issue 1426) to January 2, 2020 (issue 1436). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts. Feel free to email me directly (mike@cabotwealth.com) with any questions/comments you have.
Cabot Top Ten Trader
Movers & Shakers January 17: Despite a few intraday wobbles, it’s shaping up to be yet another positive week for the major indexes—as of Friday morning, both the S&P and Nasdaq are up in the 2% range (give or take). Obviously, this keeps the market’s major trends pointing up and keeps us on the bullish side of the fence. Mike’s buy ideas today are: Burlington Stores (BURL), Reliance Steel (RS) and Sea Ltd. (SE). Mike has four sells today: Bed Bath & Beyond (BBBY), KBR Inc. (KBR), Scorpio Tankers (STNG) and Target (TGT).
Weekly Issue January 13: The big-cap indexes remain in rarified air, as they continue to levitate higher and the sellers refuse to put up a fight. Even more encouraging is that many stocks that took the prior few weeks off (generally building tight ranges) have resumed their advances, a good sign. That said, the upmove has become a bit more selective (small- and mid-cap indexes haven’t participated lately) and the numerous yellow flags among secondary indicators are still in place. Thus, Mike says that you should remain bullish and continue to hold most of your strong performers, but picking your spots on the buy side makes sense as well. His Top Pick is blue chip Salesforce.com (CRM), which has accelerated to new highs after 15 months of base-building.
Cabot Undervalued Stocks Advisor
Special Bulletin January 17: Schlumberger NV (SLB – yield 5.1%) reported strong fourth-quarter results this morning, and the stock is up 1.5% in morning trading to 39.37. Crista is keeping it at Buy.
Weekly Update January 15: The broader stock market continues to perform well, and a variety of undervalued laggards are finally rising, including Abercrombie & Fitch (ANF), LGI Homes (LGIH) and Tyson Foods (TSN). So if you’ve got a portfolio stock that’s making you cringe, consider selling it and moving into any of these three growth stocks, where you might experience immediate upside to your share price. Crista has one portfolio change today: Adobe Systems (ADBE) moves from Buy to Hold.
Special Bulletin January 14: Crista reviews Abercrombie & Fitch’s (ANF) presentation at the January 13 ICR Conference 2020 and moves the stock from Buy to Strong Buy. Also, Citigroup (C) reports strong fourth quarter results.
Monthly Issue January 8: We are almost past a very quiet time period on Wall Street that featured a lack of major company news, M&A activity and earnings reports. As such, this will likely be the last recent issue where Crista has had to scour the internet for new information on our portfolio companies. Today’s featured stocks are those that she senses are most likely to rise this month: AXA Equitable (EQH), Broadcom (AVGO), LGI Homes (LGIH) and Tyson Foods (TSN). Today’s portfolio changes are: Alexion Pharmaceuticals (ALXN) moves from Strong Buy to Buy, Designer Brands (DBI) from Hold to Buy and Mosaic Company (MOS) from Hold to Buy.
Cabot Stock of the Week
Weekly Issue January 13: The broad market remains strong, and all Cabot’s market timing indicators are currently positive, so Tim remains optimistic that we’ll see higher prices in the month ahead. However, it’s worth noting that the market is increasingly ripe for a pullback, and that a few of our super-strong stocks (LK and SPCE and TSLA, to name three) are also ripe for major pullbacks. In other words the market looks a bit overheated here. Thus this week’s recommendation Dow Inc. (DOW), is a lower-risk, high-yielding chemical stock with very little downside potential. I think it will balance those higher-risk stocks nicely. There are two portfolio changes today: Designer Brands Inc. (DBI) moves from Hold to Buy and TopBuild (BLD) from Hold to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update January 16: Carl writes that the big news pertaining to global investing is the signing in Washington yesterday of the phase-one “truce” trade deal between America and China. In effect, it kicks the hard stuff down the road—and there will surely be some hard feelings if China is unable or unwilling to meet its broad, ambitious and vague promises for more purchases of U.S. agricultural and manufacturing products. There are two portfolio changes today: DBS Bank (DBSDY) moves from Hold to Sell and Rakuten (RKUNY) moves from Buy to Hold.
Bi-weekly Issue January 9: As we head into 2020, emerging markets are at the top of the Cabot Global Stocks Explorer menu after developing a nice uptrend in the fourth quarter of 2019. In addition, they are cheap—trading at a substantial discount to U.S. markets on a valuation basis. Carl’s new idea today Ping An (PNGAY), a stock that is at the sweet spot of several powerful trends in China and has delivered steady and substantial profits to shareholders over the past five years. He has one portfolio change today: DBS Bank (DBSDY) moves from Buy a Half to Hold.
Cabot Dividend Investor
Weekly Update January 15: Tom writes that the bulls are firmly in control right now. The economy is solid, interest rates are low and rally-disrupting headlines have abated. For now, momentum is strong. But earnings season is upon us and it is likely that in the weeks and months ahead, earnings will drive the next leg of the market. He has no rating changes today.
Monthly Issue January 8: In this issue Tom highlights a shipping stock that has remained profitable and paid dividends every single quarter through an industry depression. SFL Corp. Ltd. (SFL) is yielding a massive 9.6%. And industry conditions are improving. It may be 2020 in the overall market, but Tom found a place where it’s 2009 again. He has no portfolio changes today.
Cabot Marijuana Investor
Update January 9: Right now, the best-performing stocks in the portfolio are the lowest-risk stocks: the hydroponic garden supply company GrowGeneration (GRWG); the real estate company Innovative Industrial Properties (IIPR) and the old tobacco firm Turning Point Brands (TPB). Eventually, however, growth will once again be rewarded, so Tim continues to hold the best and fastest-growing companies in the sector—in appropriate amounts. The portfolio is 24% in cash now, and that seems fine as we wait for the sector to strengthen. The only change with this update is that Trulieve (TCNNF) is downgraded to Hold.
Monthly Issue December 26: Generally, pruning losers and weak stocks and replacing them with strong stocks is the recipe for success. Tim added two new stocks to the portfolio last week, and if you feel underinvested in cannabis stocks, you can add any of the stocks that look attractive. But the portfolio still has 25% in cash, waiting until the sector strengthens, and he expects that to be soon!
Cabot Early Opportunities
Monthly Issue January 15: Today’s issue features five stocks across the market cap spectrum and from a wide variety of industries. Tyler has a young but rather large online retailer that’s crushing it in the pet supplies market, a supplier of industrial supplies that you’ve probably never heard of, a solar stock and an innovative software company that’s growing through viral use of its products. Then there’s this month’s Top Pick, Axonics Modulation (AXNX), a MedTech stock that’s just launched an innovative device that’s grabbing market share from the incumbent.
Special Bulletin January 14: Most of our stocks have been heading north but over the last week (or more) both Ehealth (EHTH)andEndava (DAVA) have diverged from the pack and headed south. Neither stock looks particularly broken and there’s been no big news release from either management team about any fundamentally negative developments. Tyler is moving Ehealth to Sell and Endava to Hold. We’ll end up with a small gain on Ehealth, which will remain on his watch list for potential inclusion at a later date.
Bonus Report:
3 Cloud Software Stocks to Buy NowBonus Report:
3 Canadian Small-Cap Stocks to Buy NowBonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
Cabot Profit Booster
January Expiration January 17: Today is the expiration of our first positions. Jacob gives instructions on how to manage the AAXN and PAAS trades that are expiring today.
Trade Alert January 15: Sell Existing Position: Sell your Scorpio Tanker (STNG) Stock and Buy to Close your February 40 Call. Scorpio Tanker (STNG) stock fell through our stop yesterday afternoon. And because Cabot Profit Booster is a very disciplined system and we are tied to a pre-determined stop we will exit our stock and option position today for a small loss.
Weekly Issue January 14: The Stock – Fortinet (FTNT) Last year, there were at least 7.9 billion records—including credit card numbers, home addresses, phone numbers and other highly sensitive information—that were compromised by computer hacks, mainly through invasions of business networks. Among the new-age players in the field, Fortinet is one of the bigger beneficiaries, as it provides a wide range of integrated, automated cybersecurity solutions worldwide.
Frequently Asked Questions Report:
Frequently Asked QuestionsBonus Report:
Best-Kept Hedge Fund Secrets to Explode Your WealthBonus Report:
5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.Bonus Report:
The Simple Technique that Brings in 5%-15% Each Month.Wall Street’s Best Investments
Daily Alert January 17: Vanguard Growth Index Fund ETF Shares (VUG) Moneyletter
Top Picks Issue January 16: It was a great year for the markets with the DJIA gaining 22.3%, the S&P 500 up 28.9% and the Nasdaq rose 35.2%. But it was even a better year for us! Our Top 5 Picks for 2019 averaged returns of 131%! William Velmer of S.A. Advisory was our big winner. His stock idea gained an astonishing 332%! In this year’s Top Picks issue, Nancy’s contributors are primarily focused on growth, technology and healthcare. But, she also offers several other categories for your review.
Daily Alert January 16: Digital Realty Trust, Inc. (DLR-PL) Income Securities Investor
Top Picks Daily Alert January 15: Anavex Life Sciences Corp. (AVXL) BI Research
Top Picks Daily Alert January 14: Heritage Commerce Corp (HTBK) Forbes Dividend Investor
Top Picks Daily Alert January 13: National Western Life Group, Inc. (NWLI) Positive Patterns
Ask the Experts
Cabot Growth Investor
Question: URI has been mentioned as ”stock of interest” in bimonthly letter. Been pretty weak recently. I can’t find any news from my sources.. Have you seen anything to account for the 12 pt. dip? Thanks.
Mike: Thanks for asking. Nope, haven’t seen any news, though industrial stocks have been lagging some. At this point, it’s either a sell or really on a tight leash – maybe it’s a shakeout but it should hold right here if it’s still OK in my opinion. Be careful with it.
Cabot Early Opportunities
Question: I like the write up on AXNX. Looks promising. I was hoping for some comments on APPS. I’m upside down on it. I must have missed your 6.74 but price somehow. Do we still like APPS? Chart not exactly promising. Thanks.
Tyler: As far as APPS goes, yes, I still like it. On the one hand, yes, it’s 16% off it’s all-time high. But on the other this is really more of a consolidation phase (in the 6 to 8 range) that began in September. So it’s not like the stock is faltering, it’s just digesting a 12-month move that saw it rise several hundred percent. My take is that investors are just in pause mode awaiting more clarity on Android device growth in 2020 and beyond. Management should give us some update on that on the next earnings call, currently due out around Feb. 11. In the meantime it’s just a waiting game. Not particularly exciting. But, in the grand scheme of things not surprising either. That, in a nutshell, is why I’m still keeping at BUY.
Premium Reports
Quarterly Cabot Analyst Meeting
The recording of the quarterly Cabot Analyst Meeting from January 15, 2020 is now available for you to listen to at your convenience—click here for access. This quarterly private call with our analysts is one of your exclusive Cabot Prime member benefits.
Cabot’s 10 Best Stocks to Buy and Hold for 2020.
Special ReportOnce again, Crista has created a diversified portfolio of growth stocks with strong fundamentals to help you achieve your 2020 investment goals through capital gains and dividends. The Top 10 list from 2019 performed well, with a total return over 20% through mid-December.
Cabot’s 10 Favorite Low-Priced Stocks for 2020
Special ReportThis year’s Low Priced Stocks Report, which as it usually does, features a mix of names (some beaten-down, some recently strong) that have great potential to stage at least a short-term bounce in the weeks ahead—if not much more down the road.
A Richer Retirement
Special Report This handbook is designed to help you secure a better, longer, richer retirement for yourself by making the most of your savings both before and during retirement.
Guide to Cabot Prime
This Guide to Cabot Prime will help you make the best use of your Prime membership to create a strong personal portfolio.
Stock Recommendations Tracker
The table below lists all of the stocks held in any Cabot portfolio.
Updated or revised recommendations from the past week are in purple text.
Stocks added to a portfolio are highlighted in green text.
Closed stock positions in the past week are highlighted in red text.
| Stock | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| ABBV | Buy | |||||
| ACB | See Advisory | |||||
| ADBE | Hold | |||||
| ALXN | Buy | |||||
| AMZN | Strong Buy | |||||
| ANF | Strong Buy | |||||
| APHA | See Advisory | |||||
| APPS | Sold | |||||
| ARE | Hold | Hold | ||||
| AVGO | Strong Buy | |||||
| BABA | Buy | |||||
| BAND | Hold | |||||
| BIP | Hold | Hold | ||||
| BKR | Buy | |||||
| BLD | Sell | |||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Hold | |||||
| C | Buy | Buy | ||||
| CCI | Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CRAK | Strong Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CTVA | Hold | |||||
| CURLF | See Advisory | |||||
| CZZ | Buy 1/2 | |||||
| DAVA | Buy | |||||
| DBI | Buy | Buy | ||||
| DBSDY | Sell | |||||
| DIS | Buy | |||||
| DOCU | Buy | |||||
| DOW | Buy | Buy | ||||
| DXCM | Buy | |||||
| EPD | Buy | Buy | ||||
| EQH | Strong Buy | |||||
| FCX | Buy 1/2 | |||||
| GES | Strong Buy | |||||
| GM | Buy | |||||
| GRWG | See Advisory | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Buy | ||||
| IPHI | Buy | Buy | ||||
| LGIH | Strong Buy | |||||
| LK | Buy 1/2 | Buy | ||||
| MCY | Buy | |||||
| MEDIF | See Advisory | |||||
| MO | Buy | |||||
| MOS | Buy | |||||
| MPC | Strong Buy | |||||
| MRVL | Buy 1/2 | |||||
| NEE | Hold | Hold 1/2 | ||||
| NVCR | Buy 1/2 | |||||
| OGI | See Advisory | |||||
| OKTA | Hold | |||||
| PDD | Hold | |||||
| PGX | Buy 1/2 | |||||
| PLNHF | See Advisory | |||||
| PNGAY | Buy | |||||
| PWR | Strong Buy | |||||
| QCOM | Buy | |||||
| QRVO | Buy | Buy | ||||
| RIO | Buy | |||||
| RKUNY | Hold 1/2 | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | Buy 1/2 | ||||
| SFL | Buy | |||||
| SLB | Buy | |||||
| SNAP | Hold | |||||
| SPCE | Buy a Half | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold | |||||
| TCNNF | See Advisory | Hold | ||||
| TDOC | Buy | |||||
| TOT | Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Strong Buy | |||||
| UEIC | Buy | |||||
| VLO | Buy | |||||
| VOYA | Strong Buy | |||||
| VRTX | Buy | Buy | ||||
| XEL | Hold 2/3 |